Indian stock markets quickly fell into negative territory after opening marginally higher on Thursday following the US stock markets as Dow Industrials shed more than 170 points after the US Federal Reserve kept the key policy rates unchanged. The market participants were also cautious ahead of the major corporate earnings for the quarter and the year ended 31 March 2018 with companies such as Vedanta, Adani Power, MRF, PNB Housing Finance, Emami, Castrol India, Hexaware Technologies, IRB Infrastructure, JSW Energy, L&T Finance Holdings and Radico Khaitan.
The S&P BSE Sensex dropped about 86.59 points to a day’s low of 35,089.83 after opening at 35,257.31 whereas NSE Nifty dived 31.5 points to a day’s bottom of 10,686.55 after starting at 10,720.15 on Thursday. Shares of ICICI Bank, Adani Ports, ONGC, HDFC, ITC emerged as the major gainers among Sensex components today. Shares of Wipro, Tata Motors, HUL, Dr Reddy’s, RIL, Yes Bank were the major laggards. Among the ‘A’ group shares of BSE, HCC, Indigo, PC Jeweller, Just Dial and Siemens lost 4 to 15% whereas MMTC jumped more than 8%.
Shares of Biocon shed more than 4% to Rs 636 after the drugmaker said the US health regulator has made 7 observations after inspection of its sterile drug product manufacturing facility in Bengaluru this week. The stock of Interglobe Aviation crashed 17.57% to a day’s low of Rs 1,111.3 after the aircraft carrier posted a 73% drop in the net profit to Rs 117.64 crore for the March quarter as higher fuel costs and foreign exchange loss took a toll on its bottom line. The stock of PC Jeweller tanked as much as 14% to a fresh 40-month low of Rs 95.05 on BSE today.
US stocks fell on Wednesday as potential US restrictions on Chinese telecom companies reinforced investor concerns about worsening trade relations between the United States and China, Reuters said in a report. Wall Street’s major indexes had briefly moved higher after the Federal Reserve left interest rates unchanged in its policy announcement on Wednesday but gave up gains as the session progressed, Reuters added. The Dow Jones Industrial Average fell 174.07 points or 0.72% to 23,924.98, the S&P 500 lost 19.13 points or 0.72% to 2,635.67 and the Nasdaq Composite dropped 29.81 points or 0.42% to 7,100.90.